Aviation operators urge review of 'unjustified' jet fuel price hike
It urged the government to urgently reconsider the decision and set a more realistic and acceptable price to ensure stability and growth in the country’s aviation sector
The Aviation Operators Association of Bangladesh (AOAB) has expressed deep concern over the decision by the Bangladesh Energy Regulatory Commission (BERC) to raise the price of jet fuel (Jet A-1) by 80%, describing the move as "unjustified" and harmful to the country's aviation sector.
In a press statement issued today (24 March), AOAB Secretary General Mofizur Rahman said there is no shortage of fuel in the country, as confirmed by the relevant ministry.
He added that around 25 oil tankers have arrived in Bangladesh over the past 22 days, with fuel purchased at previously agreed prices. Mofizur also pointed out that global oil prices have declined in recent times.
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"In this context, such a steep increase in jet fuel prices based on anticipated future price hikes is not justified," he said.
The statement said the price revision was determined at a BERC meeting held today, based on the average Platts rates between 5 March and 22 March, revised premiums for January-June this year, the US dollar exchange rate, and unchanged diesel prices.
Under the new decision, the price of jet fuel for domestic flights has been increased from Tk112.41 per litre to Tk202.29 per litre. For international flights, the price has risen from $0.7385 per litre to $1.3216 per litre.
Hafizur further highlighted that the increase in Bangladesh is significantly higher than in neighbouring countries. While India and Nepal have kept jet fuel prices unchanged, Pakistan has raised prices by 24.49% and the Maldives by 18.54%, but for Bangladesh, the hike is 80%, he added.
According to the statement, the decision, if implemented, will place severe financial strain on airlines and lead to higher costs for passengers on domestic routes.
It also warned that increased taxes on jet fuel would further raise operational expenses, posing a challenge to the sustainable development of the aviation industry.
The association cautioned that the price hike could even lead to a suspension of domestic flight operations on certain routes.
AOAB has urged the government to urgently reconsider the decision and set a more realistic and acceptable price to ensure stability and growth in the country's aviation sector.
